German Bonds Rise
World Economy

German Bonds Rise

Germany’s 10-year government bonds advanced for a second week as the European Central Bank’s debt-purchase program helped push yields on the euro area’s benchmark securities to record lows.
With the ECB committed to buying 60 billion euros ($64 billion) a month of fixed-income securities, investors are finding themselves in competition with the central bank to get hold of the bonds. The crunch pushed up prices so far that German notes due in as many as eight years dropped below zero for the first time this week, Bloomberg reported.
And as yields on shorter maturities drop, investors are being pushed into “longer-maturity, less liquid or lower-quality assets,” Michael Story, London-based global product manager at Pacific Investment Management Co., wrote in a posting on the firm’s website.
Germany’s 10-year yield fell four basis points, or 0.04 percentage point, this week to 0.16 percent at the 5 p.m. London close on Friday. The yield touched 0.139 percent on Thursday, the lowest since Bloomberg began compiling the data in 1989. Its five-year average is 1.81 percent.
The price of the 0.5 percent bund due in February 2025 rose 0.385, or 3.85 euros per 1,000-euro face amount, to 103.365.
The nation’s eight-year yield was at 0.01 percent after slipping to minus 0.005 percent on Thursday. A negative yield means investors buying the securities would get back less than they paid when the debt matures in 2023.


Short URL : http://goo.gl/oOU1ua

You can also read ...

Cyber threats are ever-evolving.
The White House released a report that found that the economic...
Global Investors Target Zimbabwe Energy Sector
Zimbabwe has become a magnet for billionaire global firms such...
BSP said the planned RRR cuts are part of the bank’s financial market reforms.
The Bangko Sentral ng Pilipinas said it was reducing banks’...
FAO regional representative Julio Berdegue (R), and the deputy regional representative Eve Crowley.
Identifying territories where rural poverty is most entrenched...
Asean Labor Flows Hit a Wall
Tighter restrictions on foreign labor in Malaysia and Thailand...
Baby-boomers will start turning 75 or older in 2022, which is expected to trigger a surge in health care and nursing care costs.
Amid stalling inflation and ballooning government spending,...
The country’s GDP grew by 3.2% in 2017 but will  edge down in the coming years.
A report by the International Monetary Fund showed Sunday that...
Lagarde Backs Creation of European Monetary Fund
International Monetary Fund chief Christine Lagarde has no...